About this Show

Americas News Headquarters

News/Business. Analysis of the day's news. New.

NETWORK

DURATION
02:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Port 50003

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 38, Washington 18, America 13, Harry Reid 12, U.s. 12, Boehner 11, Shannon 10, United States 6, Mitch Mcconnell 6, John Boehner 4, Texas 4, Mcconnell 4, Obama 3, Mike Emanuel 3, Verizon 3, Spiriva 3, Purina 3, S&p 3, Thaddeus Mccotter 3, Jeff 3,
Borrow a DVD
of this show
  FOX News    Americas News Headquarters    News/Business. Analysis  
   of the day's news. New.  

    July 31, 2011
    9:00 - 10:59am PDT  

9:00am
>> bill: 30 seconds away, huh? >> jenna: it seem like that. >> bill: there is a song line in there, lyric line. >> jenna: we'll work on that. that does it for us, though, everybody. thank you for joining us. i'm jenna lee. >> bill: i'm bill hemmer. have a great sunday. shannon bream from washington. the speaker chose when he didn't have the vote instead of reaching out in bipartisan way, he chose to go to the dark side. >> the president derailed that agreement. time for the president to tell us what he is for. >> i think we all know that if the president decides to reach agreement with us, the democrats, most of them will fall in line. >> we'll come in at noon and have a vote at 1:00. glad to see the move toward compromise. i hope it bears fruit. >> shannon: finally , progress on the debt crisis? it seems that way from what the senate leaders are saying this morning. the senate has just gone back to session and expect to have a vote on the reid debt bill
9:01am
an hour from now. part of a push to come to an agreement before the looming august 2 deadline, two days from right now. i'm shannon bream live from the nation's capital and we begin with chief congressional correspondent mike emanuel live on capitol hill. mike, certainly one of the key figures here is the senate's top republican. what does he got to say today? >> reporter: fascinating change in tone, once senator mitch mcconnell and speaker john boehner started speaking directly with the president of the united states and vice president joe biden, having multiple conversations and feeling like they were getting closer and closer in terms of the possibility of a deal. here is the latest from senator mcconnell this mor morning. >> we are very close. we have come a long way since april. in april, the president asked us to raise the debt creeling with no spending reductions at all. now i think the potential agreement that you just outlined is within our reach.
9:02am
we will avoid default and avoid raising taxes and begin to get the federal government's house in order. >> reporter: that is the pitch from the republican side to their members how far things have come, raising the debt ceiling cut where we believe we are today with a potential deal. >> shannon: it sounds like there would be elements in the new deal to get done that both parties aren't going to like. how are they going to cobble together enough votes to get anything passed? >> reporter: it sounds like they are counting on senator reid to deliver votes and also senator mcconnell able to deliver votes in the house, they are going to count on leader nancy pelosi to deliver democratic votes. because clearly some of the tea party folks will not be happy with the element of the deal. with more on that, here is the republican whip kevin mccarthy. >> you cannot be the leader of the free world and sit on the
9:03am
sidelines and tweet and think you will get the job done. >> reporter: bottom line, mccarthy saying that the president needs to engage, he needs to deliver democratic votes. that is something that we heard hinted at yesterday, that if the president said he was for the deal, he could deliver the democrats as well. >> shannon: all right, mike emanuel live on the hill. thank you, mike. >> thank you. >> shannon: some in congress argue there is a lot of hype in the debt talks. ohio democrat dennis kucinich says there is no legitimate reason for the united states to go in default. we are dealing with a manufacturered political crisis, not an economic crisis. the congressman joins us now live to explain. thank you for joining us today. >> good to be with you. >> shannon: okay. so what is manufacturered about this? >> we raised the debt ceiling 74 times since 1962. ten times since 2001. i mean this is close to being perfunctory ministerial function. the fact that we would have fiscal armageddon because we raise debt ceiling doesn't
9:04am
make sense at all. this is a manufacturered crisis but it has real effect. we have to have a deal but see what kind of a deal it is. >> former white house chief of staff rahm emanuel famous saying you make the most of any crisis that comes along, you have to make the most of it. now it's the g.o.p. controlling the house. oech, they feel if we are going -- they feel if we are going to continue raising the debt ceiling, they will never get spending under control and they see this as a chance to make changes in the future. do you agree we need fundamental changes? >> it's important to look at how did we get in this deep hole? several wars. the bush tax cuts. medicare part "d." and our bad trade policies. central reasons why we went in to this ditch. also, we are not creating jo jobs. so we need to refrain the economic picture, because we get whatever deal we get that
9:05am
saves us from the default, downgrade and recession, we have 14 million people out of work. projected capacity of the country isn't being worked. we have huge trade deficits. having a deal doesn't mean the house is really in order. you can always look at how government spend money and you should. wherever there is waste, cut it out. but government should have important functions such as providing for the welfare of eld her i who pay money to social security, making sure that medicaid and medicare work so people relying on it have help. a the uncertainty created by -- all the unseasonty created by the manufacturered crisis is sad. >> shannon: markets don't like it. >> $400 billion in investor wealth. >> shannon: a bad week on the markets for sure. >> shannon: we talk about this. i know you use the word "manufacturered" but many people, including the president and treasury secretary tim geithner referring to this as a serious
9:06am
economic process or crisis. is it semantics? do you take issue with them say that? >> all we needed to do was have a clean vote on the debt ceiling. tarp came, i voted against tarp. they didn't say you had to have all the financial reforms in place before the government antied up $700 million to wall street. they made tarp funds available to wall street. i didn't vote for it. but what we're trying to do is to pour years and years of fiscal angst in a few moments to see if we can come up with the solution to be able to -- raise debt ceiling contingent on that. that is a bad way to operate a country. the uncertainty we created across the nation, uncertainty with the average folks and investors and around the globe hurts america. i said it before and say it again on the show. there is no reason the greatest country in the world should be talking about going
9:07am
into default. we need to solve the problems without the political hisser toia that enveloped the town. the american people will be better off to get a deal done to raise debt ceiling. and get america back to work. >> shannon: you mentioned a clean debt ceiling vote. house held earlier in year and people thought it was a foregone conclusion and wouldn't pass. it failed 318-97. if you did get something like that done, what incident would there be to clean up the long-term problem? >> there isn't anybody who doesn't know we need to get a grip on how we spend money. war in iraq, according to a nobel winning recipient says will cost us trillions of dollars. we spent billions of dollars on medicare part "d" to give pharmaceutical companies the
9:08am
ability to name their price to the government for pharmaceuticals available to seniors and get their price. we owe so much money to china and on the other side, we have trade deficit with china for hundreds of billions of dollars. we can't make things in america anymore? we have to rebuild the manufacturerring base, rebuild america, put america back to work. we need a new new deal. >> shannon: that would be an improvement. we'll watch to see if the deal comes together and whether or not you vote for it. thank you for being with us. >> good to be with you. thank you. >> shannon: fair and balanced, we have other congress members coming up from both sides of the aisle. stick around. you will hear from them as well. i am not worried that we are going to have a double dip recession, but i think it's imperative on all of us to do everything to reduce the
9:09am
smallest chance of that. >> that was gene sperling exdirector of the national economic council and assistant to president for economic policy talking to bret baier earlier today on "fox news sunday." will sperling's comments give the u.s. markets a confidence boost? who better to ask than the senior vice president and managing editor of fox business network, neil cavuto who is spending a lot of time in d.c. keeping an eye on it. great to see you today. >> same here, shannon. >> shannon: what do you make of gene sperling's comments this morning? >> hope springs eternal, we hope he's right and we don't go to double dip but data doesn't look promising. gdp out for the latest quarter this week and it's weaker than we thought. we had a gain, all of 1.3%. that was again something that rattled the markets earlier. news that the prior quarter wednesday revised to gain of .4% of a percent. durable good orders, key gauge of manufacturerring activities, plummeting more than 2%. merck announcing it is laying off 13,000 people. research in motion, blackberry
9:10am
fame, announcing it will lay off 2,000 people. news this morning across the pond that hsbc, the big international financier is looking at laying off 10,000 workers. obviously the double dip concerns are very, very pronounced. the near-term concern at least for wall street now potential that the guys in washington can come up with a deal. it looks like they will come up with something so they might have short-term relief if they get that. longer term, it seems to be as spotty as it looks i don't know if they will be relieved that long. >> shannon: just as you were speaking, senator harry reid, majority lead ore the senate took to the floor, they are back in session he said no agreement has been reached but he is cautiously optimistic. what do you think that will do to the market if that is the closest we get to an announcement of a deal today, with the market opening up
9:11am
overseas tonight and opening up here tomorrow? >> we are already seeing reaction in the middle east. those markets are open today. they have sunday trading in the middle east. saudi arabia falling close to 1.5% yesterday. and they're up. aman is down but there is a separate soap opera going on there. qatar is up .7 of a percent so there is relief there. but most of the markets to the first point are focused on concerns of a double dip. these are oil producing nations so they're much more sensitive to the fear of a slowdown to the demand of their precious commodity, oil. the read will be asia and by extension to europe and maybe via extension to our country after trading resumes here.
9:12am
that is a deal is a deal and relief that one is in the making. i must stress that much as there might be near-term relief, there should be concern longer term after what would be the overall headlines in this deal. any deal kick around is in the area of $3 trillion. that seems like a lot of money but it's spread over several years so much pain could be in the outer years, so not much near-term could rat the market longer term. what could also rat the market it doesn't assuage the credit rating agencies that says they have to be substantial cuts and they have to be committed to the city of $4 trillion, not $3 trillion. if all of a sud stan moody's and s&p and the fitch investors said $4 trillion is what we said and you are giving us $3 trillion, there could be hell to pay because in the end you might get your deal and also still get your downgrade. too early to tell.
9:13am
i don't want to jump the gun. but the rating agencies were looking for $4 trillion. if we don't get that, we could get the downgrade anyway. whatever rally could be short-lived. we'll see. >> shannon: thank you for lending us your expertise. we love having you here in washington with us. he is going to be here, neil, throughout the weekend. you can catch a special edition of "your world" live from capitol hill today, 4:00 p.m. eastern. don't miss it. your turn to weigh in. we want to know what you think. what do you think will happen on august 2? we have a whole lot of ways to reach out and tell us what you are thinking and feeling. send your tweets to us at anhqdc, or send them to me at shannon bream. or head to the show page at foxnews.co foxnews.com/headquartersnews hq. take our poll. so far, nearly half of those who have taken the poll think nothing will happen on
9:14am
august 2. plenty of time for you to weigh in. we'd love to hear from you. we'll read your thought option the debt crisis later in this show. well, a verdict is expected in a week in the case of two american hikers charged with spying in iran. the trial wrapped up today on the second anniversary of their arrest. lauren green is following the latest. >> it was hoped that the american hikers would be free men today but iranian court won't announce the fate of shane bauer and josh fattal until next week. they were jailed on charges of espyionage they deny. on friday, family and friends rallied in new york ahead of today's trial. they have declared this week a week of action.
9:15am
>> we want to send a clear message that we are beginning a period of intensive prayers and hope after so many delays they will be freed. >> shane and josh are innocent men, compassionate beautiful people. if it wasn't for them i wouldn't stand here today and have the strength to go on. they helped me get through 14 months of prison. they hopped the final court session would bring immediate relief because it corresponded with the ramadan, holiest month in their religion when pardons are traditionally handed out. >> shannon: thank you for keeping us updated. >> sure. >> shannon: doubt surface about dna evidence that was used to convict amanda knox in
9:16am
italy. they say some of it was unreliable and possibly contaminated. they found 50 errors including the fact that dirty gloves were worn while the evidence was handled. the trial picks up on friday. knox was sentenced to 26 years for murdering her british roommate. the senate is back in action. word a bipartisan deal could bring another debt bill to the congress and to the president. but is compromise a bad thing? we'll talk to a member of congress who says give-and-take on capitol hill is what got us in this mess. >> this house has acted. it is time for the administration and time for our colleagues across the aisle put something on the table. tell us where you are! >> it's time for to us be adults. it's what the american people want. time to come together to compromise. >> our democratic friends in the senate offer no solution to the crisis.
9:17am
there is room for compromise if there is will. it's not that difficult. [ mom ] one of the challenges for kayla being gluten-free is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to syes" to something that they want to eat. [ male announcer ] chex cereal. five flavor gluten free to something that they want to eat. naturals from delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. an accident doesn't have to slow you down. with better car replacement, available only with berty mutual auto insurance, if your car is totaled,
9:18am
we give you the money for a ca one model year newer. to learn more, visit us today. responsibility. what's your policy? your nutritional needs can go up when you're on the road to recovery. proper nutrition can help you get back on your feet. three out of four doctors recommend the ensure brand for extra nutrition. ensure clinical strength has revigor and thirteen grams of protein to protect, preserve, and promote muscle health. and immune balance to help support your immune system. ensure clinical strength... helping you to bounce back. ensure! nutrition in charge!
9:19am
9:20am
it's time for to us be adults. that's what the american people want. time to come together and compromise. it's what the american people want and that's what we need to do. >> the next guest says compromise is what got us in this mess. he was one of the republicans who voted no on speaker boehner's bill. georgia congressman tom graves joins us now. congressman, thank you for your time today. >> thank you. >> shannon: all right. has for you "compromise" become a dirty word? what is the deal? >> in washington, that's all it's about. compromise and deals. america wants solutions. that's what i got elected to do to bring solutions to washington.
9:21am
last november was an incredible message that the american people sent. they don't want compromise right now. they want answers, they want solutions. let's get out of this mess. enough is enough. >> shannon: you vote nod on the boehner plan as we mentioned. what we're seeing outlines coming together today would be less accept to believe you, so you will probably be a no vote base opt what we know so far? >> based op what we know. we see a little here and there. but this is what we saw the past week. if the goal is to raise the debt limit, this is a great solution to raise the debt limit but what about reducing the debt? that is what the problem is. does the solution we're presenting now match the enormity of the problem? i don't think it does. we need stronger, bolder proposals out there to correct the problem. we have too much debt. we are spending too much as a nation. >> shannon: what is the deal-breaker for you? several of the plans are
9:22am
bicameral. so both sides and parties have a voice. where is your concern there won't be enough spending cuts? >> you can see it in the beginning. we don't know if there are spending cuts right now that will be current. >> if we can't make the cuts now in this environment, we will never make them. they will not happen. we need a balanced budget amendment sent to the state. you hear the talk in this proposal but it's like a vote on the balanced budget amendment. let's let the american people have the vote on the balanced budget amendment. the president said we don't have enough people in washington that say yes. i submit for far too long we have had too many people in washington that haven't said no. they didn't say no to government no, stimulus or no to bail-out and that led to where we are now where people say yes, we need more debt.
9:23am
>> you talk about not compromising. how do you forseat that you could get through a proposal that would be accept to believe you and the conservative republicans based on the numbers alone and what you deal with in the senate and white house? >> let's step back to one of the most historic votes in the house. on the cut, cap and balance proposal. more republican votes than the boehner bill. it had bipartisan support and the american people were behind it. 67% of the people said yep, that is the answer to move forward. if you are going to ask for more credit line from the chinese, at least put constraint in place so we know we are working out of the problem and on the ground of solvency in the future. >> shannon: no hope in the senate? >> they just put it on the table, that's it no debate. it's on the table. just like the boehner bill. they're sitting side-by-side.
9:24am
pick up the cup cap and balance. >> shannon: we will see. harry reid saying he is cautiously optimistic and you'll get a look and we'll see how you vote as well. >> thank you for having me. >> shannon: thank you for coming in. abandon the reckless proposal. the message that 43 senators have for majority leader harry reid. with less than an hour before they vote on his bill, we talk to one of the senators. the senate budget committee ranking member, jeff sessions. speaking of reaching a deal, we tell you why peyton manning is one step closer to training camp and how much the four-time n.f.l. mp3 is mvp is reportedly making.
9:25am
9:26am
9:27am
>> shannon: senate majority harry reid said he is cautiously optimistic a deal can be made.
9:28am
it's the bottom of the hour. peter doocy is standing by with your top stories. >> reporter: the seen year producer just announced that the g.o.p. senators have been told they will gather behind closed doors for a meeting at 1:45 eastern. this is mitch mcconnell's time to update members on where things stand. mcconnell says the negotiators are "very close to a deal." two american hikers charmed with espionage in iran will not be release today. a lawyer for josh fattal and shane bauer said he hoped for release because of the upcoming holy month of ramadan when pardons are officially handed down in a just released statement, the family says the coming days will have great hope and be difficult. day six in the search for missing girl in new hampshire. celina cass.
9:29am
n.f.l. star peyton has a new long-term deal in time for training camp. the indiana colts owner jim irsay says he was thrilled to sign manning, the only four-time mvp in history. according to the tweet, the five-year contract is worth $90 million. those are the top stories. back to you. >> shannon: sounds like your paycheck. i've seen it. >> yeah. >> shannon: thank you, peter. >> all right. one of the top members of president obama's economic team tells fox news he is not worried that the u.s. will have double dip recession. ed henry is live at the white house with more on the obama administration's take where it stands right now in the push to get a deal done. ed, what is the reported deal all about? >> what is interesting is that a lot of the outlines of the deal have been out there for days. it's just a matter of getting both sides together to try to hammer this out. what we're hearing is that the president would be able to lift the nation's debt ceiling, the heart of the crisis. somewhere in the neighbor of
9:30am
$3 trillion in the next couple of years there would be trillion dollars in up-front spending cuts and another round of $1.8 trillion to $2.8 trillion spending cut of member of congress made up of equal number of democrats a republicans reporting back with where they could find the money for these cuts. the key, though is going to be what is the trigger what is the enforcement mechanism to make sure this is not just another washington commission that studies the problem and doesn't act. gene sperling said this is the important element of the deal. take a listen. >> he supports having a straitjacket on us saying if you don't get your work done, there will be action taken to make sure you don't get debt reduction. whatever the enforcement mechanism is, it has to give both sides incentive to
9:31am
compromise and work something out. more than a way to come up with enforcement mechanism to give both a chance to compromise. >> another important element of this is that the president has been pushing to have taxes on the table. you remember in the primetime address he talked about a balanced approach. there may be tax revenue on the table. friday in the remarks to the white house president said the commercial committee of congress should look at taxes and entitlement cuts but it's looking like in the final details still worked out, the taxes are likely to be off the table, shannon. >> shannon: do we know how involved the president has been in the negotiation? >> he appears to be very involved with joe biden. they have been on the phone with the vice president. the president has been involved in the final hours.
9:32am
he said in their view he was accent from the talk. a week or so he said he didn't want to negotiate with the president anymore and he wanted to work it out on the hill. so the, was given them space to do that. the time hour, the president would be heavily involved to wrap this up. >> shannon: ed henry live at the white house. thank you, ed. >> reporter: good to see you. >> shannon: 43 republican senators signed the letter outlining the objection to reid's solution to this. they asked him to abandon the reckless proposal and pursue a responsible course of action. joining me now one of the men who signed that letter, senator jeff sessions ranking member of the budget committee. good to see you. thank you for coming in. >> thank you. >> what do you make of the contours of the latest deal? it sounds like a two-tier approach.
9:33am
do you think they will have success? this is what we need to bring spending under control. it could be $3 trillion and it may be closer to $2 trillion. we have to look at the numbers as they come out of any agreement but the country has to change the debt. it's the debt, not the agreement or the deal. not the ceiling. the ceiling highlights we have a problem. the debt is third. we hit the limit of the credit card sooner than people expec expected. we have to figure out how to strengthen the economy which is weak. house members went from $6 trillion in cuts to agreeing on $1 trillion in cuts to get an agreement for a short-term period to get past
9:34am
the debt crisis. >> shannon: i know for months you have been very vocal in saying you didn't think the negotiations should happen behind closed doors, there should be hearings. it should be an open process do you think it's conducive to getting something done? or do you think some of this has to go on quietly where people can negotiate? >> who is negotiating? only a few people. select committee appointed by leaders. they do what the leaders say, so it's just not the open great process that the tremendous wonderfully united states senate should be participating in. we should have been talking about this all year and started with the budget resolution. which the democratic majority refused to pass a budget. two years, 8 # 3 days without a budget. united states congress. we have to do much, much better. i think the american people in the last election said we want to hold you accountable, members of congress. we allowed you to put this
9:35am
country in financial crisis too long. we want to see you. so we have had no votes. [ no audio ] i think that is sad. >> shannon: well, as this deal reportedly comes together, if ill's codified a gets in a legislative form and comes before you as a vote, what is a deal-breaker for you? is there anything you can't give a yes vote? >> well, we have to see. i know reduction in spending and the changes of the debt path are not going to be what we need. because the president can veto it. he has threatened to veto it. the senate can block it. they threatened to block it. you have to find something that will pass the senate and the president can veto. like a beast cornered it's fighting, the claws are out and defending the resources that the american people give to them and their ability to
9:36am
spend. it's hard to extract spending cut of congress. >> shannon: it will probably take wisdom of king solomon to get it done but they're counting on the lawmakers. thank you for taking a break and we know you have to run to a vote. >> we hope we can do something. it's important to reach an agreement and get the first step done. seen as first step. >> shannon: thank you. americans are fed up with the debt debate and a talking point for several g.o.p. presidential hopefuls on the campaign trail. which of the candidates can capitalize on the debt mess? >> mr. president, i can assure you people across america have heard of the term the debt ceiling before. it's the president of the united states who doesn't understand what raising the debt ceiling means. i have copd. if you have it, you know how hard it can be to breathe
9:37am
and what that fes like copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms... ...by keepinmy airways open... ...a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintence treatment that does both. and it's eroid-free. spiriva doesot replace fast-acting inlers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and call your doctor right away if your breathing suddenly worsens,... ...your throat or tongue swells, you get hives, vision changes or eye pain,... ...or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps meeathing with copd is no small thing. ask your doctor about spiriva.
9:38am
9:39am
9:40am
i say to my friend, the republican leader, i appreciate this, wrapping his arms around this and being such a cheerleader for this idea. it's a good idea. >> shannon: that was senate majority lead irharry reid moments ago on the senate floor. he said he is cautiously optimistic about a deal. could we see an agreement soon? the senate is back in session on this sunday and expected to have a clo sure vote soon -- cloture vote. but there is a renewed hope of a bipartisan deal. well, the budget battle rages on. g.o.p. candidate michele bachmann headed to the campaign trail. she is going to be attending a number of events in iowa today. former senator rick santorum will also be in iowa hosting a town hall. taking a different path, congressman ron paul once again cleared his calendar to be right here for the debt debate in washington. his son senator rand paul also
9:41am
canceled a weekend trip to iowa. he was going to campaign for his dad. checking in on herman cain, he is stopping in denver and that event will have a straw poll later today. we'll bring you the results when they come in. many of the 2012 g.o.p. presidential contenders are making their voices heard in the midst of the debt crisis debate. who stands to gain or lose by doing that? joining to us break it down, former nrcc communications director, karen hamready and also joining us former advisor to harry reid. welcome. >> thank you. >> shannon: in the field, we have people who can pontificate about it and some who voted on it, current members of congress. michele bachmann and ron paul a no-vote to the boehner bill that came on friday. thaddeus mccotter, late brant to the race, he voted yes and told the tea party it's time to grow up. they were powerful in 2010. penny, does it raise his ire at his own expense?
9:42am
>> that is what is happening right now with the republican field. they are having to talk to two elements of the american public. one is the tea party voters who will be the one most likely nominating them to the republican nomination. the other is electorate at large. other candidates like mitt romney being cautious in what they say, because they know that the end of the day the responsible thing is to lift the debt ceiling. the candidates are playing both sides and members of congress have their voices heard and they will play to the tea party more by voting no. others are saying the responsible thing to do is stay silent so we don't end up in default. >> shannon: karen, if the tea party is a major indicator for who ultimately gets the g.o.p. nomination, folks like bachmann and paul stand to benefit coming out to say absolutely no and come here to enter the vote? >> what you are seeing is what they are doing, the vote they took is not inconsistent at
9:43am
all with what they have been saying all along. i don't think any of us should be surprised. they have a constituency they play to. we have the ames straw poll coming up. this helps her. i don't think politically speaking it helps romney or pawlenty to stick their head up in this debate. they don't get a vote on it. this debate is one debate of a longer battle. that is going to take place between now and 2012. how do you fix the economy? increase taxes, cut spending, how do you deal with the deficit? this is just one snapshot in a larger debate that is going to happen that is really going to define the 2012 presidential campaign. >> shannon: i want to talk about somebody who is not in but always in the conversation, former alaska governor sarah palin. she has had a lot to say about
9:44am
this, too, saying look, we passed "cut, cap and balance" in the house. that's what she wants to move forward and pushing on the folks there is hints she suggested the tea party will take you out, anybody who votes in favor of the plan she thinks is not strident enough is that her trying to stay in the presidential mix or influence others who are officially in? >> this is sarah palin trying to stay rel vent in the debate but in actuality it's irresponsible she is saying if you don't adhere to the politics of absolute and absolutely no compromise, i'll put a primary opponent out for you and gen up the support and anger against you and take you out. that is what is adding to the debate that people don't want to compromise because they worry about primary fight on republican or democratic side. i don't think it's responsible for her to be out there saying we'll put it out there and gen up the anger against you when many folks are trying to
9:45am
compromise to get country on the right track and do the responsible thing. >> shannon: we're out of time. thank you for coming in today. great the see you. freshman tea partyers in congress have been pushing back hard against the republicans and democrats that has some blaming them for debt stalemate is that a fair charge? we talk with the tea party leaders and a republican congressman standing with speaker boehner. >> we've confirmed what many people subjected, which is that the tea party republicans may be a noisy and effective protest movement, but they are unfit to govern. turn left. you have arrived. sweet belt. e-reader for textbooks. gps. video camera for lectures. game pad. have you considered this ? it's got all tha and more than 200,000 apps.
9:46am
technology to learn and play on-the-go. only at verizon. android powered. playstation certified. the xperia play by sony ericsson. only $99.99. how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you did that yourself?" so when we can save more on the projects that let us fix, make, and do more... that just makes the stories even better. more saving. more doing. that's the power of the home depot. add some style to your sink, with this moen banbury faucet for the new lower price of 79 bucks.
9:47am
9:48am
>> shannon: take a listen. this is senator john mccain on the senate floor. he appears very animated at
9:49am
this point. the senate is in session on this sunday. supposed to be coming up on a vote on a bill to solve the debt problem. authored by senate majority leader harry reid. it's scheduled for 1:00 there is doubt about exactly when that will happen, because there is talk of a bipartisan agreement. if that happens, then the vote may not happen. but it's all very much in flux right now. ♪ ♪ on the right, take note. it's as unwarranted and injurious for republican to call a tea partyer a "hobbit" as it is for the tea partyer to call republican a rhino. we cannot unite america if we divide the movement. consequently, the time has come for the tea party to grow up and republican party to wake up. >> shannon: strong words from presidential candidate thaddeus mccotter about the
9:50am
party establishment, if you want to phrase that it way and the tea party freshmen. can both sides work together to come to a final deal? joining us now are tea party patriots co-founder jenny beth martin and republican congressman duncan. how do you respond to thaddeus mccotter's call that the tea party "grow up"? >> he is implying that the tea party is part of the republican party. we never said that we were. we promised in october and november of last year we are going to hold both sides accountable to hold their feet to the fire. that is what we are doing. $14 trillion in debt is too much. time to stop overspending. >> shannon: congressman, for those who are taking a hard line and sticking to the pledge that they made and what they ran and were elected on, is it complicating the job to try to find a compromise in washington? do you think there is room for the view points? >> there is room for all viewpoints michigan whole thing with this is stay on offense. keep hooking and jabbing, keep fighting. hit the guys every way we can. that is what we're doing
9:51am
that's what boehner's deal does. boehner's deal cuts, it does not raise taxes. it keeps us on offense and it boxes obama in. that's what i want to do. i was in the united states marine corps and i believe in doing something, even if you have 80% of your solution. you never have 100%. you make decisions on 70%, 80%. keep fighting and take it back to then again and again. keep cutting. keep on rolling with this thing. i like it. >> jenny beth, what are your specific concerns or problems or do you have them with the recently boehner bill on friday? what are your objections? did you have problems with the tea party members or those who say they stand with the tea party voting for that particular measure? >> our stance with the tea party patriots all along is not raise the debt ceiling. we understand the political reality so we feel like somebody has to stand up for principle. it's trying to get the spending under control. boehner's plan is making cuts for ten years in the future.
9:52am
we need cuts right now. we spend $4.4 billion a day that is in borrowed money. we have can't keep doing that. >> shannon: is it realistic to expect this country and the government to continue operating without raising the debt ceiling as they have done dozens of times before? >> i understand the need for it. i understand why they are concerned about it. the august 2 deadline is set, there is money coming in. they can continue to pay the bills. it's frustrating if you can't find something in $4.4 billion a day, enough to build 2-1/2 space shuttles to cut, then when are you ever going to be able to find something to cut? >> shannon: congressman, can you work with that? >> yes. republicans are not going to cut medicare. we're in the going to cut social security and we want to sustain the way of life we have in this country. we have don't want to go backward. we have want to keep things so that people have something to fall back on. we pass a balanced budget amendment twice now. that is how you save this
9:53am
nation. you can only spend what you bring in. we aren't going to cut $2 trillion next year. it's not going to happen. we aren't going to cut defense there are places we are not going to move on, but what we have to do is pass that balanceed budget amendment. the american people on your polls over 70% support a balanced budget amendment. and that's how we do this. we have to keep fighting in the meantime until we get support to do that from the american people pushing op their member of congress and the senators who seem like they just don't know what is going on. but i think there is room for everybody. 22 noes, that is okay to have 222 nos, because we passed. doing nothing -- we have to stay on offense. >> shannon: we have common ground for agreement. thank you for joining us. we appreciate it. we want to take you live to the senate floor. it's getting heated between senator mccain and senator durbin. there is some back and forth. let's take a listen. >> go ahead. >> yield for a question.
9:54am
>> i'll be glad to just hear your comment. >> i will give you a chance to speak again. does the senator believe defaulting on the national debt for the first time in our history, which has been the threat looming over us from the house republicans and others for a long period is good for america's economy? one of the colleagues on the floor here from the state of pennsylvania has come in and said listen, defaulting on the debt is not that big of a deal." this his words," in his -- in his words "it can be easily managed." does the senator agree to the thinking? >> i came to the floor a couple days ago and made a comment. we are in agreement. if you can prioritize -- every economist i know would agree. you can prioritize for a while where you want what remaining money is left. but the message you send to the world, not just our markets but to the world, that the united states of america is going to default on its debts is totally unacceptable
9:55am
scenario. beneath a great nation we are in agreement number one. >> amen. >> number two is that to insist, to insist that any agreement is based on the passage through the united states senate of a balanced budget amendment to the constitution of the united states, as i said before, it's not fair to the american people because, because the terrible obstructionists on this side of the aisle. their flawed philosophical views about the future of america is not going to allow us to get 20 additional votes from your side, assuming that you get all 47 since it requires 67 votes to pass a balanced budget amendment, because. >> mr. president. >> i think it was wrong in assessment, it's not fair to the american people to say that we can pass a balanced budget amendment constitution through the senate at this
9:56am
time. now maybe after the senator is defeated in the next election and we have read a lot of -- my doctor told me calcium is besabsorbed in small continuous amounts. only one calcium supplement does that in one daily dose. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to syes" to something that they want to eat. [ male announcer ] chex cereal. five flavor gluten free excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language.
9:57am
♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say.
9:58am
9:59am
this iin lazy sunday here n washington. right now talk of a possible compromise on the debt mess that has stifled washington. lawmakers are very less to a deal that could help america stay solvent. i'm shannon bream.
10:00am
starting with chief congressional correspondent mike emanuel. what are are we hearing from key democrats? like some of them were cut out of the negotiations, the talks with the white house. >> sounds like the negotiations have gone essentially to the white house and key republican leaders here on capitol hill. a short time ago, senator harry reid said he had several conversations with vice president biden and here is more from senator reid. >> after speaking to republican leader mitch mcconnell this morning we are cautiously optimistic. there are a number of issues yet to be resolved and we must understand that. there is no agreement that has been made but we are optimistic that one can be reached. >> so bottom line it sounds like the respective leaders of the different caucuses will sell the plans and reveal the details of the plans to their
10:01am
members and see exactly where the votes are at this point or try to get a general sense of how many votes they can deliver because it is not really a deal if you can't get the votes to pass it. >> shannon: all about the numbers. mitch mcconnell is optimistic. are other republicans weighing in. >> others are suggesting how far the process has come. the president wanted to raise the debt ceiling without any spending cuts. wanted a plane clean vote on raising the debt ceiling. here is senator jon kyl's take on where things on. >> three months ago the president insisted on a clean debt ceiling extension. clearly we will have a significant amount of spending reductions in this proposal. the second thing was he insisted on revenues as he called them. tax increases. there will not be tax increases in this proposal. >> bottom line, the most liberal members are not going to be happy with the details they hear.
10:02am
some of the tea party folks will not be happy with the details they hear but they are trying to find a compromise and obviously the clock is ticking. >> shannon: thank you very much. what does happen if the nation fails to raise the debt ceiling by the deadline on tuesday? nobody really knows for sure. most experts agree the country may not have enough money to pay all of its bills and that means $23 billion of social security checks set to go out on wednesday could be in jeopardy. bondholders will still get paid but that will come at the expense of unemployment, medicaid and defense spending. and you are looking live at the senate floor. a cloture vote going on to the bill, the debt compromise put together by senate majority leader harry reid. they are moving forward with a bill, at least cloture vote to get to the bill that most people do not think will be
10:03am
successful ultimately. but with details of a deal being worked out that may be moot. it is searchly not a done seal so the vote on the reid bill is going forward right now live on a sunday in washington. republican senator roger wicker says president obama is the reason we don't have a debt deal. he says he has been standing in the way by opposing a workable bipartisan solution. he joins you live to explain why. we know you are busy with the vote going on. thanks for taking a break for us. >> i think i will be able to do this and make the vote also. >> we will keep it short and snappy. you are referring to a deal that a lot of folks were done and it didn't stick together which gives us pause about whether the one we are hearing about today will also stick together. why are you, though, pointing the finger at the president for the later deal falling apart. >> those remarks were made six days ago. that is an eternity in
10:04am
politics. let's look on the bright side. one of the president's chief counselors was on the talk shows today, david plouffe and he said there was pretty much an agreement and outlined the frame work of it. i think the president is on board at this time. the last few details about the cuts are being put into place and looks like we will have something that we can talk about in an hour or two. >> shannon: do you worry that as we heard from speaker john boehner his opinion that this president can't take yes for an answer, an apparent reference to the possible earlier deal that didn't gel. worried that may happen this time around or do you think we are legitimately closer to something happening? >> we are closing to something happening because we are closer to august 2. people realize the seriousness of this and nobody wants to default and go post deadline without a solution. so i think the grown up in all of us is -- and the practical side of our leadership will come forward.
10:05am
>> shannon: and how important, senator, do you think it is that any deal that is crafted be bipartisan meaning there has been substantial input from both republicans and democratic leaders on capitol hill? >> this is the stark reality of divided government. i will tell you this, as a conservative this would be a much better deal if we had won four more senate seats in november but we didn't. there were a lot of close ones and we weren't able to get a majority in the senate. you have republicans controlling basically one third of the government and based on that i think we have made significant achievements. as senator kyl was saying we don't have a clean debt ceiling any more. we have budget reductions tied to it. we don't have tax increases in this deal. so we have come a long way. is it as far as i would have wanted to? no. but it is bipartisan and it has to be because the one person on the face of the eartha has to
10:06am
sign this legislation is a fairly left wing democratic president of barack obama and if he agrees to sign it i think he will probably be able to pull a few of his democratic friends into the yes column. >> shannon: how much pressure is there on the president that the point to deliver the votes for the democratic side of the ail if he appears to be signing off on the deal as it comes together? >> i think as a practical matter if the democratic president of the united states endorses this and says we need it for the good of the country it is not everything he wanted, but we have to have it here in this 11th hour and i think he can bring along the votes. now, you know, i haven't seen the details. i have heard an outline. senator mcconnell scheduled a meeting for 1:45 this afternoon. that has now been postponed to a later time. i guess that is because the details haven't quite been fleshed out yet. but, based on the outlines i have seen, i think the president will probably be able
10:07am
to get enough moderate and center left democrats to vote for it and a probably loses his left wing. >> shannon: senator roger wicker, a republican out of mississippi. we know you have a vote to run so so thanks for making time for us, sir. >> thank you very much. >> shannon: friday the s&p 500 had its largest weekly loss in a year and the gdp an anemic 1.3% for the second quarter. how does the uncertainty on capitol hill affect our economy? not a good week in the markets last week. we are hearing different news about the international markets responding a little bit to what sounds like could possibly be a deal here today. if we get something positive going forward how do you think the markets will remark here tomorrow, at least here in the u.s. >> if we have a deal the markets will respond favorably.
10:08am
if they are expecting a government closure on the second it will depend on what treasury secretary geithner says he is going to do. so far he has been agnostic. that has created uncertainty in the markets. a lot depends on what the administration says. >> shannon: and certain members saying we have looked at contingency plans, we have to. they are not good, they are dire. how does the market react to something like that? >> irresponsible. similar to a government closure, shutdown, which we have been through in the past. they have to prioritize and decide where they are going to spend the money just like the state of minnesota did. i'm having trouble understanding why the treasury secretary is less capable than the controller of minnesota who just went through this for three weeks. >> shannon: so we are hearing that a possible deal coming together could be in the neighborhood of $3 trillion. you lose track after awhile with all of the zeros around here. $3 trillion in it cuts but hearing from at least one of
10:09am
the ratings agencies they expected something at least in the $4 trillion neighborhood and even then no guarantee that we wouldn't be downgraded from a possible triplele a rating. how do you think they will respond in washington? >> not enough. a lot of pressure from treasury which is inappropriate not to do anything. consider this. u.s. spending over the last four years, the pelosi congress is up at a rate of about $10 trillion for the next ten years. trillion dollars a year. i would think cutting that in half, $5 trillion is doable. not even that much is on the table. s&p asked for $4 trillion. as far as i'm concerned that was a very reasonable request. >> let's talk about the gdp number, 1.3% growth for the second quarter. what is your reaction? >> terrible policies. antibusiness policies. if you make war on the private sector, the private sector picks up and leavings. the president's job czar is outsourcing american jobs as
10:10am
quickly as it can. general electric. think about the soundings for the last two weeks. major u.s. companies shutting down operations, moving jobs abroad. they basically have figured it out that as long as these democrats continue to run this country if t. is no place they want to be. >> shannon: any potential good signs out there in the economy or all depend on what they can hammer out here on capitol hill? >> after they get past this they have to get back to the issue of jobs creation and they are much more damaging than even all of the spending they have been doing is all the regulateing that we have borne. hopefully they will start to turn their attention to things the president says he is for but doesn't act on. for example, more domestic energy production. said he was for that but the department of energy continues to make war on energy companies. also deregulation. he established a commission to deal with unnecessary regulation but nothing has come out of that. what i would like to see is this president do some of the things he has said he would do over the last six months to get
10:11am
the economy going and hopefully, republicans, the tea party and others will start to focus public attention on his inaction. >> shannon: , all right, thank you, sir. >> nice to be with you. >> shannon: with uncertainty still looming about what exactly is going to happen on august 2 many members of the military and their families are wondering whether or not they are going to get paid. during a trip to afghanistan saturday, joint chiefs admiral mike mullen was asked by a military officer if they are going to get their checks. it sounds like even he is not sure. >> shannon: mullen did say he is confident they will eventually get paid. >> a new report out says iraq is not only more dangerous than it was a year ago but that the mission there is costing a
10:12am
whole lot more than expected. steve centanni live in washington with the latest on that report. >> a report from the inspector general for iraq reconstruction has bad news on two fronts. for one thing, the inspector general says "iraq remains an extraordinarily dangerous place to work. it is less safe in my judgment than 12 months ago ." he calls this is summer of uncertainty in iraq as the u.s. and iraqi government decide whether u.s. troops will remain past the december deadline for a pullout. violence has been on the upsurge. here are examples outlined in the report. 15 u.s. soldiers killed in iraq in june making it the bloodiest month for the u.s. military in that country in two years. also an increase in rockets launched against the green zone where the embassies and governments are located and constant assassination attempts. the report claims government contractors have bilked u.s. taxpayers. the government was charged $900
10:13am
by a contractor named anhenllv for a control switch valued at $7. $80 for a piece of equipment valled at $1.41. and $40 for a circuit breaker you and i could buy for $8. -- the contractor says the charges are false and without legal or federal justification. senator susan colins of maine says the state department has refused to provide documents to help the inspector general's investigation and calls the situation "absolutely unacceptable." >> shannon: two american hikers charged with spying on iran will not be released today but you will soon learn their fate. the trial wrapped up in tehran today, two years exactly since the day they were arrested. iran's arabic language ail alan television quoted a judicial official sass saying their
10:14am
verdicts will be released in a couple weeks. >> the senate is going through the cloture vote. a lot o of people think there is sort of a foregone conclusion as there is word bubbling through washingtoning there may be a bipartisan deal in the works. speaker john boehner on the house side has told republicans there are still serious issues that have to be ironed out. members we understand will likely be briefed this afternoon. he feels it is adamantly important that members have a chance to weigh on anything that comes to together. with it that in mind and no deal truly done the cloture vote is underway in the senate. we will keep you updated. troops stormed the city of hama this morning, reportedly killing a dozen people. syrian security forces appeared to fire at the protesters from tanks and also to set fire to civilian vehicles.
10:15am
activists on the ground claim at least 45 people have been killed in the military attacks. hama is 135 miles north of damascus and has become a hotbed for these dem demonstrations. fox news learned that the man accused of plotting an attack had enough bomb making materials for two bombs. authorities say they found 18-pounds of sugar, a pressure cooker and smokeless gun powder. one law enforcement source told fox news that the suspect "was all ready to go." tropical storm don petered out before it hit land and left a very dry, texas still wanting for rain. now, we have our eyes on another storm system developing in the atlantic. all this as deadly temperatures continue to stifel the country. marina is at the fox weather center with the forecast. >> we are tracking a new storm system that could potentially become our next named storm
10:16am
emily. right now it is 650-miles to the east of the northern winward islands. a closer look at it on satellite. starting to become better organized and will be entering water that is very warm and winds that aren't very strong. that allows it to continue to strengthen. the national hurricane center coined it at about 100% or near 100% sure that this will become our next tropical depression as we head into the next 24 to 48 hours and potentially could already be our next main storm, emily, that is next on the list. you mentioned the heat across texas. still not expecting a relief from the heat or drought conditions. some of the area across the state of texas need up to 15 inches of rain just to be back to near normal levels for the rest of the year. high pressure in place through the rest of this weekend and much of next week. northern plains today talking about a risk again for severe
10:17am
storms so fire up, large hail, damaging wind gusts and even damaging hail possible. snow scourge today. 104 dallas. 97 kansas city. the northern plains the hot temperatures with a high of 94 degrees in rapid city. and because of the hot temperatures and how humid it is out we have again some expected heat warnings as well as heat advisories across central portions of the u.s. and some heat index values to reach 115 degrees out there. the city of dallas, texas, we have been actually in a streak of 100-degree weather. 29 days in a row already that they have experienced temperatures of 100 degrees or more. they are currently tied for the second largest 100-degree weather streak and, of course, if you look at the forecast through friday of next week mortems in the triple digits. more sunshine and just no rain, shannon. >> shannon: thank you very much. new information on the memorial service planned at ground zero for the 10th anniversary of
10:18am
9/11. the new york mayor michael bloomberg says the ceremony will be solemn and stately with no speeches. president obama will attend along with former president george w. bush and former mayor rudy giuliani. only family member letts be allowed inside the memorial that day to look for the names of their loved ones etched on to the railings of two water falls. even though they are reportedly inching closer to a debt deal. many bond ferraro they can make it t. to the house and senate on time. up next, a fair and balanced debate on both sides of the aisle. [ slap! ] [ pneumatic wrench buzzing ] [ slap! slap! slap! ] [ male announcer ] your favorite foods fhting you? fight back fast with tums. ccium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums
10:19am
our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time. we get double miles on every purchase, so me and my lads earned arip to san francisco twice as fast we get double miles every time we use our card... i'll take these two... ...no matter what we're buying.
10:20am
...and all of those. and since double miles add up fast, we can bring the whole gang! it's hard to beat double miles! whoa dude. [ male announcer ]et the venture card from capital one and earn double miles on every purchase, every day. go to capilone.com. what's in your wallet? the newest release with verizon 4g lte. the first phone pre-loaded with access to netflix's massive movie library. powered by verizon 4g lte for an unparalleled streaming experience. see how mobile entertainment was meant to be seen. only with verizon 4g lte. now get the revolution by lg for $199.99 and receive 3 months of netflix free.
10:21am
10:22am
i have a much more positive feeling than i did 24 hour a's go. there is an active negotiation underway. i think some of the things that are coming forth hold promise. clearly we will have a significant amount of spending reductions in this proposal. the second thing was he insisted on revenues as he called them, tax increases. there will not be tax increases in this proposal. >> shannon: senate minority leader mitch mcconnell says lawmakers are close to a tentative deal on the debt but will it get enough support in the house and senate to pass before the tuesday deadline? joining us are democratic congressman tim ryan and republican congresswoman nan hayworth. thank you both for joining us. >> thank you. >> shannon: you say republicans are to blame tore where we are right now? >> i think this plan is
10:23am
completely unbalanced. how could we can $3 trillion of cuts to be made primarily to pell grants, head start, medicare, middle class families who have had stagnant wages for 30 years and not going to ask the top 1% for any sacrifice at all to help us solve this problem? i think creating the framework where the cuts are the only solution i think is bad policy and i think it is bad economics and i think what we really have to watch as this thing comes down the pike now there is rumor there's could be a trillion dollars worth of cuts in the next seven months. that is a disaster for the economy to pull a trillion dollars out of our economy right now, when we just had 1.3% growth in the second quarter and to think that somehow is going to create jobs in america, that is a disaster. >> shannon: and, of course, we have to wait now because we are sort of speculating about what we know about the frame work at this point. >> we are. >> shannon: we do have the basic context of what they are trying to pu put put together.
10:24am
congress woman what you heard about the potential deal coming together, does it look any more attractive to you than it does to your colleague? >> shannon, the key to remember is that we have 14 million americans who are desperately seeking employment in this country right now. we need to control federal spending. we need to do the common sense things that american families are doing all across the country. that is why it is so important to emphasize that the federal budget has to come into line, has to be restrained. what we are looking for as the house majority is entirely reasonable. it is what the american public has asked us to do. we are looking for budget and spending cuts that are at least dollar for dollar with the amount of increased debt the treasury has asked to take on. and we can't have new taxes. new tax burdens cost us jobs. they take jobs away. so we need to have those two conditions met. they are very reasonable
10:25am
conditions. they are what american families are doing. cutting down, restraining their spending. they want the federal government to balance its budget the way they have to do. >> shannon: and congressman, i'm guessing that philosophically you are just going disagree on some of those points. >> yes. >> shannon: let me ask you about the possibility of a budget amendment. it has been talked about a lot in the budget negotiations. some type of a trigger or a vote? what would the timeline be on that? is there any kind of balanced budget amendment that could be drafted in a way that would get your vote? >> probably not. i think we are all elected to do this and i think it puts constraints on our ability to make investments in the united states and to meet our obligations. again, the ones that have been coming down the pike set up a frame work for cutting medicaid and medicare and cutting the basic investments we have been making in the united states. if it is that kind of -- i mean i will look at anything. but if it is that kind of frame work where it is so focused on
10:26am
cutting programs that help the middle class of course i'm going to be against it and just to respond to what nan said, if we are pulling a trillion dollars out of the economy in the next several months and cutting back the federal government spending right now that ultimately means teachers, police, fire, when the money hits the ground. now, is not the time to raise taxes and now is not the time to cut spending. these should be put in place down the line once we get through this difficult economic period that we are in. >> shannon: and congresswoman quickly i will give you the final word here. >> shannon, it is clear that democrats and republicans from the house and the senate have agreed on a substantial number of spending and budget cuts that we can make without harming the promises that we have made to our seniors, to the disabled, to our veterans. nobody wants to see people lose in that process. we can do this right and the american people all will win. we need to put that trillion
10:27am
dollars back into the economy so that people can save and spend and invest in the sensible ways that they are fully capable of doing. federal government has to have common sense in charge and that is what we are aiming to do. >> just the top 1% is not being asked to sacrifice anything. is that really fair? everyone is going to sacrifice in the entire country, our vets, our military, the middle class except for the top 1% is unfair and bad economics. >> shannon: and many would argue that they do already have a significant tax burden as a percentage of what is paid. >> they have the lowest tax burden they have in 60 years. >> shannon: a quick chance to respond. i have to close it out. >> proportionately we have a progressive tax system in the united states. nobody is saying that we can't improve on our tax system. we can grow our economy and grow the resources that we need to tackle our challenges by
10:28am
putting more americans back to work. >> shannon: and fair and balanced debate. got to leave it there. >> bush tax rates, economic collapse. >> shannon: thank you you both for coming. fair and balanced debate as always. >> shannon: four people dead after two planes collided mid air in anchorage, alaska. all four bodies removed from the wreckage but have yet to be identified. authorities are still not sure what caused yesterday's crash. a flight from the jfk airport in new york to the south american country in guyian that split in two after landing. the caribbean airlines flight stopped just sort of a deep ravine and broke apart. there was chaos because there were no rescue crews on scene for quite awhile. 30 people were hurt but luckily none of the injuries were life threatening. >> that is senator majority
10:29am
leader harry reid speaking. they just had a cloture vote. it failed. let's listen in. >> that we have a piece of legislation. we can do that and not require a bunch of cloture votes. we are seeing if something can be worked out. i had for the information of senators a number of conversations in the last hour with people downtown and the arrangement that is being worked on with the republican leader and the administration and others is not there yet. we are hopeful and confident it can be done. as soon as it is done i will let my caucus know. i have had conversations with republican leaders and other senators. senators should be aware that further roll call votes are possible today. we will do everything we can to give members adequate notice before roll call votes are made. >> i would be happy to yield. >> if we would have a vote i
10:30am
would assume we would have significant notice for our members because many members would probably like to leave the capitol if we are not going to be voting. >> i would say to my friend that is the appropriate thing to do. i would not suggest a ballgame, though. maybe closer than that. we'll give everyone adequate notice. we'll give -- as i indicated we will do everything we can to give members plenty of notice and as i indicated we will do on this side of the aisle caucus later today whenever we are able to do that. i would note the absence of a quorum. >> clerk will call the role. naturals from purina cat chow. delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life.
10:31am
but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have cess to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare.
10:32am
10:33am
>> shannon: when it comes to the debt talks one of the top members of the president's economic team says it ain't over until it's over but could we finally see a deal today. in learning a little more minute by minute. live at the white house with
10:34am
more on the obama administration take. ed, where do we stand? i'm not going to say at this hour, at this minute? >> it is minute-by-minute shannon. i spoke to two different senior administration officials who say we are just not there yet and they can't make a deal happen until it is done and it is just not. there is a lot of reporting out there suggesting it is getting closer and closer but the senior officials say there is still outstanding officials that remain and when gene sperlik was on fin "fox news sunday" he said the president's focus is making sure it calms the market also is fair to both parties. take a list. >> having specificking dueling plans that just reflect the ideal preferences of either party is not how you get the agreement that help protect our credit. what protects our credit and
10:35am
prevents us from getting downgraded is the confidence that the divided government can work to bring the deficit down and that only happens when you forge a bipartisan compromise. >> that would be that balanced approach. the president spoke about at the beginning of the week in his prime time address. what he meant by that was sure, spending cuts burks a trillion dollars in upfront spending cuts. up to $2 trillion more cuts down the road but the president also wanted to see tax changes on the table as well. some of the early reporting suggesting taxes might be i stress might be off the table. but again, white house officials stressing these negotiations are not done so that could be something that reemerges. there is a lot left to be worked out here, shannon. >> ed henry live at the white house. thank you for the update. >> thank you. the republican plan is not a solution. the experts say all too soon we would be back in the midst of
10:36am
partisan wrangling with our economy, once again held prisoner by extremists in the party, republican party led by the tea party. >> shannon: well, one of those so called extremist florida congressman allen west is a tea party favorite and some were shocked to hear he is supporting the budget plan proposed by john boehner. has he gotten any backlash? he is here. we'll ask him. >> a lot of folks say if you line up with the tea party you can't lien up with this plan by speaker boehner but you voted for it. are you experiencing any backlash? >> no, i'm not. i know some people have called me a detecto defector and thatr opinion and they can have that. 2 was within the frame work that i like to see. cut spending. started off $22 million not as much as i wanted. it did put the caps on the federal government spending the
10:37am
same as cut cap and balance and we did come forward saying we wanted to have a balanced budget amendment going to the states. i think compromise, i'm willing to make sure there is no threat to default of our obligations and also is no increase of interest rates for our country. >> shannon: how do you respond to others outside of washington who say if you are with the tea party you cannot make that kind of compromise? >> i think it is all about your principles. i put it in terms of being in combat. if you sit around and wait for 100% plan you will never get there. if you can take a 70 to 75% plan you can execute it to 100% perfection you will find yourself successful on the battle field and that is the exact same thing here. we control one half of one third of the government and the fact that we are not seeing any tax hikes and the president is not getting the blank check as far as raising the debt limit those are incredible things we
10:38am
have done. and also the first time we talked about in the history of tour country we had an increase of the debt ceiling but also equal or higher spending cuts as well. >> shannon: we had a couple of democratic lawmakers on earlier today that say those issues should not be tied to the debt ceiling. they weren't in the past and it is political to do it now. >> it is not political. the thing i would say to my colleagues, we have a debt to gdp close to 70%. the federal government is almost spending a quarter of the gdp. look at the 1.3% growth and the party before that, the federal government is 25% of that that is unacceptable and we have to start turning this ship around. >> shannon: hearing about a deal. probably not going to be any major announcements today we are hearing but a lot of optimism this morning but something coming together. is there going to be a way to bring in everyone from the tea
10:39am
party to those on the left on some kind of agreement. going to be one of those you're counting the votes down to the wire to get enough people to get something on capitol hill to get something to the president's desk? >> we sent proposals over there. the cut cap and balance. the boehner plan. the senate tabled it. the same senate that has gone 82 days without passing a budget. the same senate that has sat on 7 a appropriations bills that we sent over there. it is government spending that is driving up the debt issue in our country and we have to tackle that and cap federal government spending. we have to set the conditions so that we have the confidence and certainty provided to our private sector so we can have long-term sustainable and economic job growth. that is the main thing i'm looking for. >> shannon: always a pleasure to see you. thanks for stopping by. the senate has gone into recess and senator harry reid says
10:40am
nothing of significance is going to happen today. that is where we will leave it. up next, we sit down a with a democratic congressman to find out what he thinks about another debt deal that could make the president's debt. plus, one comedian's take on plus, one comedian's take on the debt ceiling debate has gone vi viral. we will talk to this guy, coming up. you had me at "probiotic." [ female announcer ] phillips' colon health.
10:41am
it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently.
10:42am
10:43am
>> shannon: well, after about an hour and a half of work today the senate is now officially in recess but subject to call back. this after senator harry reid's proposed debt bill that he thought would be the best solution failed to get the votes it needed to get to an actual vote. that was expected. that is done now. the senate remains in recess. our next guest is a democrat who says his party has actually put something on the table and did so months ago. the bill a proposal to raise the debt limit failed after a house vote in may. what does he think about what is going on now.
10:44am
congressman garamendi, thanks for coming in. did you have any hope that it would get any further and that? >> we wanted to make a statement as everybody is making their own statement. one statement after another here. we wanted to follow the long h history of america, 74 times there was a clean debt move. the president wanted to do that. but we really have been faced with a manufactured crisis. one that didn't have to occur but it was manufactured, put together by the republicans to leverage into the public policy their notion of how you america ought to be running. so here we are down to the last couple of days and we going to go forward. i think we will solve this. we have to be careful how we do this. we got to be really careful that we don't harm the economy. it is very, very sensitive now. if you take a whole pile of money out of the economy right now you are going to see layoffs, you going to see unemployment because those are government contracts across the board from education to aerospace and the rest.re
10:45am
>> shannon: what you have seen of the so called deals, how does it look to you? >> sensitive pieces of it. medicare and social security. entitlements. people are talking about entitlements. what are you going to do with entitlements? go after the benefits or after the inefficiencies that are in it. in medicare there is a lot of proud, usually by providers, sometimes by the various people receiving the benefit but almost always by providers. there are things you could do to significantly reduce the cost and remember that medicare rides along on the wave of healthcare inflation. you have to deal with that wave. one of the things you don't like to talk about positively on this station is the affordable healthcare act but
10:46am
there are very important things in that law that reduced the inflation in overall healthcare. electronic medical records, hospital infection rate, wellness, all those kinds of programs will reduce the inflation rate and will have a positive effect on medicare. social security why would you go after the foundation bed rock. there are things that don't deal with the benefits that actually do deal with the income. right now capped at $106,000 per person. increase that and social security will go on for decades if we do that. >> any time you talk about entitlement reform it gets people's attention. a delicate thing. >> oh, yes. >> shannon: thank you for talking with us today. >> it is a pleasure. >> shannon: one of president obama's top economic advisors has award of warning on the heels of dismal economic jumps. jim angle breaks it all down for us, next.
10:47am
[ male announcer ] you've reached the age where you don't back down from a challenge. this is the age of knowing how to make things happen. so, why would you let something like erectile dysfunction get in your way? isn't it time you talked to your dtor about viagra? 20 million men already have. with every age comes responsibility. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a suen decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. see if america's most prescribed ed treatment is right for you.
10:48am
10:49am
10:50am
>> shannon: the gross domestic product increased at a dismal 1.3% in the second quarter. this is one of top members of president obama's economic team warrants uncertainty about a default could certainly hurt the u.s. economy. jim angle joins us to break it down live. >> the fiscal commissiofiscal n fista cuffs. administration officials said the fight over the debt ceiling one of the reasons. listen. >> when we allow the uncertainty created by whether our country is going to go into default to create uncertainty for investors for job creators that is a self-inflicted wound. >> but that doesn't explain why growth in the first quarter of the year was revised sharply
10:51am
downward from an initial report of 1.9% to only 0.4% or why growth in the second quarter was only 1.3%. administration officials denied it has anything to do with the president's policies, offering all sorts of other reasons. >> certainly we have had headwinds. we have had headwinds that have hurt the economy. higher oil prices. supply chain disruptions from an historic earthquake in japan. >> even the president himself has acknowledged that the stimulus did not create the shovel ready jobs he promised. private sector econ mists blame the h heavy hand of washington for increasing the headwinds facing the economy. said in a statement "it is clear that the policies of this administration which have increased regulatory burdens and dramatically raised the level of uncertainty for small businesses made it extremely difficult for the economy to grow and create jobs." and republican senator jeff sessions agrees that administration policies bear much of the blame.
10:52am
>> when you see that your energy costs may go up dramatically as a result of regulation in washington, that your healthcare costs on each employee you may hire is going to be uncertainly high and higher every year then it makes you more reluctant to hire people. >> so, even if the debt ceiling dispute is resolved, the debate over how to get the economy growing remains in full swing, shannon. >> shannon: sure does. jim, thank you. >> yes, ma'am. >> shannon: up next, a lighter look at the debt ceiling. we will sit down with the guy behind this viral video. if you heard it you can't get it out of your head. next. ♪ race the debt ceiling ♪ ♪ raise the debt ceiling hift.. i need a break. he needs some gellin'. yeahhhhhhh.
10:53am
gellin' is like having a teeny tiny foot masseuse in your shoe. you like ? nice ! dr. scholl's massaging gel insoles. outrageous comfort, all-day long. but it's our job to make them say something interesting. so how about this weekend we learn some new tricks of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done in record time and makes a statement when we're finished. we're lowering the cost of a new favorite color. more saving. more doing. that's the power of the home depot. take your painting skills to the next level at one of our free paint workshops. morning starts with arthritis pain...
10:54am
that's two pills before the first bell. [ bell rings ] it's time for recess... and more pills. afternoon art starts and so does her knee pain, that's two more pills. almost ne, but hang on... her doctor recommended aleve cause it can relieve pain all day with just two pills. this is lisa... who switched to aleve and fewer pills for a day free of pain. and get the all day pain relief oaleve in liquid gels.
10:55am
10:56am
from very clothes t close , really close is what mitch mcconnell is saying about a deal. senator harry reid says that he is "optimistic" that is deal with be reached. the senate is wrapping up after blocking a vote on reid's proposal. ♪ raise the debt ceiling >> shannon: while the fighting continues on capitol hill one man has attracted attention by creating a rap that is getting a lot of attention. it has gone viral. we loved that video the minute
10:57am
you saw it. take and serious topic but given people a chance to laugh about it. how in the world did you get that thing done? >> a good friend of mine meredith bragg at reason.tv we have been collaborating the last couple of on videos. last month i rewrote the hokey pokey and about the tsa and called it the pokey, pokey. we were talking about the debt ceiling and figured we didn't have time. finally last week we were like let's just do it. >> shannon: when one of my friends posted it earlier this week who works here at fox it had 4,000 hits and last time i looked at t was a quarter of a h million in a few days time. resonates with people that t is kind of like people need to be able to laugh about this. >> folks are paying attention to the debate and this puts hopefully an entertaining spin on it. >> where did you get that outfit by the way?
10:58am
>> i ordered it from the internet. it is 100% polyesther and if you are walking around in d.c. in the end of july, highly recommend it. >> shannon: right, not breathable at all. this is obviously taking all the oxygen in the room right now. >> we will team up for a couple more videos. i don't want to spoil any jokes but hopefully folks will stay tuned and like them. >> shannon: any time that you call tay easingqualitative along with talking in being in the club. you have to have a wonky mean to understand everything going on here. and what is your background? >> well, i just thought that it wasn't really any sort of from any sort of degree i had in or real interest in being a politician or anything like that. i just thought it would be funny to use some c span graphics. obviously we called it g span
10:59am
for the video and my friend meredith who is super talented with the video production skills just made it look like you were watching c span 3. >> shannon: it was fantastic. we love it and we hope people will check it out on line. it will give you the laugh that you need in the midst of craziness. we look forward to what is coming next. >> thanks for having me. >> shannon: we have been asking you to chime in on the debt debate. robert writes "i'm fed up dems do not want to act responsibly, only play politics." patty says i think it is time to replace all of our current reps and send house wives to d.c. they know how to run a household on the dime and bet they could do that for the country as well. and bet say says "the sun will rise just like it does every day. that is it for us here in washington. the live programming continues. gregg jarrett and heather childers up next. a live weekend edition of special report tonight with bret baier at 6:00 p.m. eastern. i'm shannon bream.